ERICSSON (LM) TEL-SP ADR (ERIC) Fundamental Analysis & Valuation

NASDAQ:ERIC • US2948216088

Current stock price

11.205 USD
-0.23 (-2.05%)
Last:

This ERIC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. ERIC Profitability Analysis

1.1 Basic Checks

  • In the past year ERIC was profitable.
  • ERIC had a positive operating cash flow in the past year.
  • ERIC had positive earnings in 4 of the past 5 years.
  • In the past 5 years ERIC always reported a positive cash flow from operatings.
ERIC Yearly Net Income VS EBIT VS OCF VS FCFERIC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20B -20B 40B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 10.18%, ERIC belongs to the top of the industry, outperforming 85.42% of the companies in the same industry.
  • ERIC's Return On Equity of 25.95% is amongst the best of the industry. ERIC outperforms 87.50% of its industry peers.
  • ERIC's Return On Invested Capital of 15.64% is amongst the best of the industry. ERIC outperforms 89.58% of its industry peers.
  • ERIC had an Average Return On Invested Capital over the past 3 years of 11.82%. This is in line with the industry average of 10.22%.
  • The 3 year average ROIC (11.82%) for ERIC is below the current ROIC(15.64%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 10.18%
ROE 25.95%
ROIC 15.64%
ROA(3y)0.43%
ROA(5y)2.81%
ROE(3y)-0.28%
ROE(5y)6.78%
ROIC(3y)11.82%
ROIC(5y)12.32%
ERIC Yearly ROA, ROE, ROICERIC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 -20 -30

1.3 Margins

  • Looking at the Profit Margin, with a value of 12.01%, ERIC belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
  • ERIC's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 14.08%, ERIC belongs to the top of the industry, outperforming 85.42% of the companies in the same industry.
  • ERIC's Operating Margin has improved in the last couple of years.
  • With a Gross Margin value of 48.14%, ERIC perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
  • In the last couple of years the Gross Margin of ERIC has grown nicely.
Industry RankSector Rank
OM 14.08%
PM (TTM) 12.01%
GM 48.14%
OM growth 3Y7.54%
OM growth 5Y1.88%
PM growth 3Y20.32%
PM growth 5Y9.81%
GM growth 3Y4.83%
GM growth 5Y3.45%
ERIC Yearly Profit, Operating, Gross MarginsERIC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40

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5

2. ERIC Health Analysis

2.1 Basic Checks

  • ERIC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • Compared to 1 year ago, ERIC has about the same amount of shares outstanding.
  • ERIC has about the same amout of shares outstanding than it did 5 years ago.
  • The debt/assets ratio for ERIC has been reduced compared to a year ago.
ERIC Yearly Shares OutstandingERIC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B
ERIC Yearly Total Debt VS Total AssetsERIC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100B 200B 300B

2.2 Solvency

  • The Debt to FCF ratio of ERIC is 1.38, which is an excellent value as it means it would take ERIC, only 1.38 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of ERIC (1.38) is better than 70.83% of its industry peers.
  • ERIC has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
  • With a Debt to Equity ratio value of 0.32, ERIC is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
  • Even though the debt/equity ratio score it not favorable for ERIC, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 1.38
Altman-Z N/A
ROIC/WACC2.07
WACC7.54%
ERIC Yearly LT Debt VS Equity VS FCFERIC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

2.3 Liquidity

  • ERIC has a Current Ratio of 1.29. This is a normal value and indicates that ERIC is financially healthy and should not expect problems in meeting its short term obligations.
  • ERIC has a worse Current ratio (1.29) than 81.25% of its industry peers.
  • ERIC has a Quick Ratio of 1.08. This is a normal value and indicates that ERIC is financially healthy and should not expect problems in meeting its short term obligations.
  • ERIC has a Quick ratio of 1.08. This is in the lower half of the industry: ERIC underperforms 79.17% of its industry peers.
Industry RankSector Rank
Current Ratio 1.29
Quick Ratio 1.08
ERIC Yearly Current Assets VS Current LiabilitesERIC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B

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4

3. ERIC Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 440.40% over the past year.
  • ERIC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.62% yearly.
  • The Revenue has decreased by -4.52% in the past year.
  • Measured over the past years, ERIC shows a small growth in Revenue. The Revenue has been growing by 0.37% on average per year.
EPS 1Y (TTM)440.4%
EPS 3Y13.71%
EPS 5Y9.62%
EPS Q2Q%36.79%
Revenue 1Y (TTM)-4.52%
Revenue growth 3Y-4.48%
Revenue growth 5Y0.37%
Sales Q2Q%-4.98%

3.2 Future

  • ERIC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -8.08% yearly.
  • ERIC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.59% yearly.
EPS Next Y-24.42%
EPS Next 2Y-10.57%
EPS Next 3Y-4.53%
EPS Next 5Y-8.08%
Revenue Next Year-1.52%
Revenue Next 2Y-0.04%
Revenue Next 3Y0.92%
Revenue Next 5Y0.59%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
ERIC Yearly Revenue VS EstimatesERIC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 50B 100B 150B 200B 250B
ERIC Yearly EPS VS EstimatesERIC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 2 -2 4 6 8

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7

4. ERIC Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 11.32, the valuation of ERIC can be described as reasonable.
  • Based on the Price/Earnings ratio, ERIC is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of ERIC to the average of the S&P500 Index (25.23), we can say ERIC is valued rather cheaply.
  • The Price/Forward Earnings ratio is 15.05, which indicates a correct valuation of ERIC.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ERIC indicates a rather cheap valuation: ERIC is cheaper than 87.50% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.51, ERIC is valued a bit cheaper.
Industry RankSector Rank
PE 11.32
Fwd PE 15.05
ERIC Price Earnings VS Forward Price EarningsERIC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • ERIC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ERIC is cheaper than 87.50% of the companies in the same industry.
  • ERIC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ERIC is cheaper than 87.50% of the companies in the same industry.
Industry RankSector Rank
P/FCF 12.02
EV/EBITDA 7.8
ERIC Per share dataERIC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

  • The excellent profitability rating of ERIC may justify a higher PE ratio.
  • ERIC's earnings are expected to decrease with -4.53% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.18
EPS Next 2Y-10.57%
EPS Next 3Y-4.53%

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7

5. ERIC Dividend Analysis

5.1 Amount

  • ERIC has a Yearly Dividend Yield of 2.80%.
  • ERIC's Dividend Yield is rather good when compared to the industry average which is at 0.76. ERIC pays more dividend than 89.58% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.90, ERIC pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.8%

5.2 History

  • The dividend of ERIC is nicely growing with an annual growth rate of 13.68%!
  • ERIC has paid a dividend for at least 10 years, which is a reliable track record.
  • ERIC has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)13.68%
Div Incr Years5
Div Non Decr Years5
ERIC Yearly Dividends per shareERIC Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.1 0.2 0.3 0.4

5.3 Sustainability

  • 33.41% of the earnings are spent on dividend by ERIC. This is a low number and sustainable payout ratio.
DP33.41%
EPS Next 2Y-10.57%
EPS Next 3Y-4.53%
ERIC Yearly Income VS Free CF VS DividendERIC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20B -20B 40B
ERIC Dividend Payout.ERIC Dividend Payout, showing the Payout Ratio.ERIC Dividend Payout.PayoutRetained Earnings

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ERIC Fundamentals: All Metrics, Ratios and Statistics

ERICSSON (LM) TEL-SP ADR

NASDAQ:ERIC (3/27/2026, 12:20:09 PM)

11.205

-0.23 (-2.05%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)01-23
Earnings (Next)04-17
Inst Owners57.49%
Inst Owner Change2.68%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap37.35B
Revenue(TTM)236.68B
Net Income(TTM)28.43B
Analysts55.86
Price Target10.19 (-9.06%)
Short Float %1.57%
Short Ratio4.69
Dividend
Industry RankSector Rank
Dividend Yield 2.8%
Yearly Dividend0.31
Dividend Growth(5Y)13.68%
DP33.41%
Div Incr Years5
Div Non Decr Years5
Ex-Date04-02
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)53.68%
Min EPS beat(2)29.76%
Max EPS beat(2)77.6%
EPS beat(4)4
Avg EPS beat(4)44.45%
Min EPS beat(4)20.62%
Max EPS beat(4)77.6%
EPS beat(8)6
Avg EPS beat(8)-30.16%
EPS beat(12)10
Avg EPS beat(12)-8.61%
EPS beat(16)10
Avg EPS beat(16)-9.98%
Revenue beat(2)1
Avg Revenue beat(2)1.05%
Min Revenue beat(2)-0.88%
Max Revenue beat(2)2.98%
Revenue beat(4)1
Avg Revenue beat(4)-1.6%
Min Revenue beat(4)-6.39%
Max Revenue beat(4)2.98%
Revenue beat(8)2
Avg Revenue beat(8)-1.04%
Revenue beat(12)3
Avg Revenue beat(12)-1.34%
Revenue beat(16)7
Avg Revenue beat(16)-0.7%
PT rev (1m)-0.4%
PT rev (3m)10.7%
EPS NQ rev (1m)0.42%
EPS NQ rev (3m)2.72%
EPS NY rev (1m)4.28%
EPS NY rev (3m)5.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.19%
Valuation
Industry RankSector Rank
PE 11.32
Fwd PE 15.05
P/S 1.48
P/FCF 12.02
P/OCF 10.65
P/B 3.2
P/tB 6.6
EV/EBITDA 7.8
EPS(TTM)0.99
EY8.84%
EPS(NY)0.74
Fwd EY6.64%
FCF(TTM)0.93
FCFY8.32%
OCF(TTM)1.05
OCFY9.39%
SpS7.56
BVpS3.5
TBVpS1.7
PEG (NY)N/A
PEG (5Y)1.18
Graham Number8.83
Profitability
Industry RankSector Rank
ROA 10.18%
ROE 25.95%
ROCE 19.8%
ROIC 15.64%
ROICexc 23.58%
ROICexgc 47.63%
OM 14.08%
PM (TTM) 12.01%
GM 48.14%
FCFM 12.33%
ROA(3y)0.43%
ROA(5y)2.81%
ROE(3y)-0.28%
ROE(5y)6.78%
ROIC(3y)11.82%
ROIC(5y)12.32%
ROICexc(3y)17.47%
ROICexc(5y)18.15%
ROICexgc(3y)43.71%
ROICexgc(5y)45.38%
ROCE(3y)14.96%
ROCE(5y)15.6%
ROICexgc growth 3Y-6.32%
ROICexgc growth 5Y4.87%
ROICexc growth 3Y14.91%
ROICexc growth 5Y1.28%
OM growth 3Y7.54%
OM growth 5Y1.88%
PM growth 3Y20.32%
PM growth 5Y9.81%
GM growth 3Y4.83%
GM growth 5Y3.45%
F-Score7
Asset Turnover0.85
Health
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 1.38
Debt/EBITDA 0.83
Cap/Depr 42.29%
Cap/Sales 1.59%
Interest Coverage 15.11
Cash Conversion 78.04%
Profit Quality 102.67%
Current Ratio 1.29
Quick Ratio 1.08
Altman-Z N/A
F-Score7
WACC7.54%
ROIC/WACC2.07
Cap/Depr(3y)41.44%
Cap/Depr(5y)47.37%
Cap/Sales(3y)1.71%
Cap/Sales(5y)1.88%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)440.4%
EPS 3Y13.71%
EPS 5Y9.62%
EPS Q2Q%36.79%
EPS Next Y-24.42%
EPS Next 2Y-10.57%
EPS Next 3Y-4.53%
EPS Next 5Y-8.08%
Revenue 1Y (TTM)-4.52%
Revenue growth 3Y-4.48%
Revenue growth 5Y0.37%
Sales Q2Q%-4.98%
Revenue Next Year-1.52%
Revenue Next 2Y-0.04%
Revenue Next 3Y0.92%
Revenue Next 5Y0.59%
EBIT growth 1Y45.04%
EBIT growth 3Y2.72%
EBIT growth 5Y2.26%
EBIT Next Year9.14%
EBIT Next 3Y5.11%
EBIT Next 5Y2.67%
FCF growth 1Y-31.52%
FCF growth 3Y5.77%
FCF growth 5Y4.32%
OCF growth 1Y-28.77%
OCF growth 3Y2.21%
OCF growth 5Y2.64%

ERICSSON (LM) TEL-SP ADR / ERIC Fundamental Analysis FAQ

What is the fundamental rating for ERIC stock?

ChartMill assigns a fundamental rating of 6 / 10 to ERIC.


What is the valuation status of ERICSSON (LM) TEL-SP ADR (ERIC) stock?

ChartMill assigns a valuation rating of 7 / 10 to ERICSSON (LM) TEL-SP ADR (ERIC). This can be considered as Undervalued.


How profitable is ERICSSON (LM) TEL-SP ADR (ERIC) stock?

ERICSSON (LM) TEL-SP ADR (ERIC) has a profitability rating of 8 / 10.


What is the expected EPS growth for ERICSSON (LM) TEL-SP ADR (ERIC) stock?

The Earnings per Share (EPS) of ERICSSON (LM) TEL-SP ADR (ERIC) is expected to decline by -24.42% in the next year.


Can you provide the dividend sustainability for ERIC stock?

The dividend rating of ERICSSON (LM) TEL-SP ADR (ERIC) is 7 / 10 and the dividend payout ratio is 33.41%.